Janice Lozano
International students face several challenges when applying for a credit card in the US. While it is possible for international students to obtain a credit card, they often have limited options due to their lack of credit history in the country and other requirements such as a Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN). However, there are alternative ways for international students to build their creditworthiness, such as getting a part-time job, signing a lease with a roommate, or putting utility bills in their name. Additionally, some credit card issuers offer options specifically tailored to international students, including student cards from major issuers like Capital One, Bank of America, and Discover. These cards often have flexible approval requirements and focus on student status rather than extensive credit history. International students can also consider secured credit cards, which require a deposit that becomes the cardholder's credit limit.
| Characteristics | Values |
|---|---|
| Credit card options for international students | Zolve, Deserve Edu Mastercard, Capital One, Bank of America, Discover, Quicksilver Student, Savor Student |
| Requirements | Social Security Number (SSN), Individual Taxpayer Identification Number (ITIN), proof of identity, proof of enrolment in a US institution, student visa |
| Benefits | Building a credit history, managing expenses, earning rewards, financial safety net for emergencies, no annual fees, cash-back rewards, no foreign transaction fees |
| Tips for approval | Get a part-time job, sign a lease with a roommate, put utility bills in your name, open a US bank account, build a financial profile |
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What You'll Learn
Understanding eligibility requirements
Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN)
One of the most common eligibility requirements for obtaining a credit card in the United States is having an SSN or ITIN. An SSN is typically issued to individuals authorized to work in the US, while an ITIN is an alternative for those who do not meet the requirements for an SSN. If you have an F-1 or J-1 visa, you may be eligible to apply for an SSN through the Social Security Administration (SSA). On the other hand, if you are not eligible for an SSN, you can apply for an ITIN through the Internal Revenue Service (IRS) by submitting Form W-7. Some credit card issuers will accept an ITIN in place of an SSN for credit card applications.
Credit History
Credit card issuers often review an applicant's credit history to assess their creditworthiness. As an international student, you may not have an established US credit history, which can make the application process more challenging. However, some credit card companies offer student cards with more flexible approval requirements, focusing on your student status rather than an extensive credit history. These student cards usually require enrolment in a US undergraduate or graduate program and may have additional eligibility criteria.
Proof of Identity and Enrollment
When applying for a credit card as an international student, you will typically need to provide proof of your identity and enrolment in a US institution. This can include documents such as your passport, visa, or I-20 form. Some credit card issuers may also require proof of income or employment to ensure your ability to repay any debts incurred.
Age Requirement
According to The Credit CARD Act of 2009, you must be at least 21 years old to be the primary holder of a line of credit unless you have an adult co-signer or can demonstrate your ability to repay debts through employment or other means.
Bank Account and Financial Profile
Having a US bank account and building a positive financial profile can increase your chances of credit card approval. Maintaining an active US checking or savings account demonstrates financial ties to the country and shows your ability to manage finances responsibly. Additionally, using tools like UltraFICO™ and Experian Boost can help report positive account activity to credit bureaus, improving your credit score.
It's important to carefully review the specific eligibility requirements of the credit card issuer you're considering. By understanding these requirements and taking the necessary steps to meet them, you can increase your chances of successfully obtaining a credit card as an international student.
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Building a financial profile
International students face a number of challenges when seeking credit and building their financial profile in a new country. One of the main hurdles is that most credit card applications require a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN). International students may not be eligible for an SSN if they only have income from foreign sources, and they will need to apply for an ITIN instead.
To build a financial profile, international students can take the following steps:
- Get an SSN or ITIN: If eligible, students can apply for an SSN, which can take up to four weeks to be approved. If ineligible, they can apply for an ITIN, which can take up to seven weeks.
- Speak to the international student affairs office: The student affairs office can advise on eligibility for on- or off-campus jobs, which determines eligibility for an SSN.
- Get a part-time job: A part-time, visa-approved job will not only help qualify for an SSN or ITIN but will also prove income to pay credit card bills.
- Open a US bank account: Having an active US checking or savings account shows financial ties to the country. Making consistent deposits demonstrates the ability to pay off credit card purchases.
- Build credit: Once a student has a US bank account, they can use tools like UltraFICO™ and Experian Boost to report positive account activity to credit bureaus, including utility bills, subscriptions, and rent payments, which can help boost their credit score.
- Apply for a student credit card: Cards like Savor Student and Quicksilver Student are designed for students to build credit and earn rewards with responsible use. Secured credit cards are also a good option for students without a US credit history, as they require a deposit that becomes the cardholder's credit limit.
- Consider a co-signer: Most student cards require a co-signer, who will be responsible for any debts accrued.
- Space out applications: It's a good idea to space out credit card applications by several months to build a diverse credit profile.
By following these steps, international students can establish a financial profile and build their creditworthiness over time.
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Choosing the right card
Firstly, it is important to note that the requirements for each credit issuer in the US vary. Some issuers require applicants to have a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN), while others do not. If you do not have an SSN, you may be able to apply with an ITIN instead, which you can request from the Internal Revenue Service (IRS). Some credit card companies will also accept a student visa in lieu of an SSN.
If you are enrolled in a US undergraduate or graduate program, explore student cards from major issuers like Capital One, Bank of America, and Discover. These cards have more flexible approval requirements focused on your student status rather than an extensive credit history. Student credit cards are best for international students who have a steady income that is already established and who plan to stay in the US. They usually offer modest rewards on popular spending categories like dining, entertainment, and streaming services, as well as lower barriers of entry.
Secured credit cards are another option for international students without a US credit history. Secured cards require a deposit that becomes the cardholder's credit limit (usually a couple of hundred dollars). The card can be used like any other credit card to make purchases that don't exceed the credit limit. Cardholders should keep their credit utilization low and make on-time payments to build their credit scores.
Other options for international students include becoming an authorized user on a trusted person's credit card or applying for a card that does not require an SSN, such as the Zolve credit card or the Deserve Edu Mastercard.
When choosing the right card, it is important to consider your unique situation, including your income, credit history, and financial goals. It is also crucial to research the different requirements and perks offered by each card issuer. You should also consider the Annual Percentage Rate (APR) and interest rates of different cards.
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Applying for the card
Applying for a credit card as an international student can be challenging, but with smart planning and responsible usage, you can set yourself up for credit success. Here's a step-by-step guide to applying for your first credit card:
Step 1: Understand the Requirements
Before applying, carefully review the requirements of the credit card issuer. Requirements vary, but typically include proof of identity, proof of enrollment in a US institution, and sometimes an Individual Taxpayer Identification Number (ITIN). Most credit card companies will require a Social Security Number (SSN), but some do not. If you don't have an SSN, you may be able to use your student visa to help you get one. Alternatively, you can apply for an ITIN through the Internal Revenue Service (IRS).
Step 2: Build a Financial Profile
Before applying for your first credit card, start building a financial profile. Speak with the international student affairs office at your educational institution to determine your eligibility for on- or off-campus jobs. A part-time, visa-approved job will not only help you qualify for an SSN or ITIN but will also demonstrate your ability to pay credit card bills. You can also build a financial profile by putting utility bills in your name, especially if the utility company reports payments to credit bureaus.
Step 3: Choose the Right Card
Research credit cards tailored to those new to building credit, such as student cards from issuers like Capital One, Bank of America, Discover, and Deserve Edu Mastercard. These cards have more flexible approval requirements focused on student status rather than extensive credit history. If you don't have a US credit history, consider a secured credit card, which requires a deposit that becomes your credit limit.
Step 4: Complete the Application
Applications for credit cards can typically be completed online. Provide the required documentation, such as your passport or I-20 form, and any other requested information. Be sure to compare the options available to you and choose the card that best suits your needs and circumstances.
Step 5: Practice Responsible Usage
Once approved for a credit card, it's essential to use it responsibly to build good credit. Make consistent deposits to show your ability to pay off credit card purchases, set up autopay to ensure timely payments, and keep your credit utilization low. Remember, a strong credit history can be beneficial when applying for loans, renting an apartment, or even applying for a job.
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Using the card responsibly
Using a credit card responsibly is paramount to building a positive credit history and achieving your long-term financial goals. Here are some tips for responsible credit card usage:
Understand how credit cards work
Knowing the credit card terms and conditions can help you use your card responsibly. Familiarize yourself with common credit card fees, annual fees, annual percentage rates (APRs), and interest rates. For instance, you may be charged late fees if you miss monthly payments, or there could be transaction fees for cash advances.
Make timely payments
Payment history is one of the largest factors in your credit score. Make it a priority to pay your credit card bill by its due date. Setting up automatic payments or electronic reminders can help you avoid missing payments. At the very least, ensure you pay the minimum amount due to avoid late fees.
Keep credit utilization low
Keep track of your balance, credit limit, and available credit. Avoid spending more than you can pay in a given month. In the beginning, use your credit card for necessary purchases only, such as utility bills, insurance, phones, internet, and cable.
Monitor your credit card statements
Regularly review your credit card statements and credit reports to identify potential issues. Credit card companies can change the terms of your account at any time, so it's important to stay vigilant and promptly review any notices or billing statements.
Build diversity of credit
Once you have established a positive credit history, consider applying for a second card from a different issuer. This can help build your credit profile, but be sure to space out applications by several months.
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Frequently asked questions
International students can get a credit card in the US by applying for a Social Security Number (SSN) or an Individual Taxpayer Identification Number (ITIN). They can also become an authorized user on a trusted person's credit card. Students with F-1 or other student visas may qualify for an SSN.
Some good credit cards for international students include Zolve, Deserve Edu Mastercard, Savor Student, and Quicksilver Student. Student cards from major issuers like Capital One, Bank of America, and Discover are also good options.
Benefits of having a credit card as an international student include building a credit history, managing expenses, earning rewards, and having a financial safety net for emergencies.
It is important to research the requirements and perks of different credit card issuers. Students should also consider opening a US bank account and building a financial profile before applying. Getting a part-time job, signing a lease with a roommate, and putting utility bills in their name can also help establish financial credibility.
